Gold has finally broken higher and in doing so broken out of the tight range it was trading in. On the 4hr chart we can see a very strong Bullish Engulfing Bar (BUEB) that smashed through resistance.
This old resistance area could now act as a new solid support area should price retrace lower. Price Action traders could look to get long at this new support should price make a large and obvious bullish price action signal.
GOLD 4HR CHART – SEP 4 2012